RBI Fines 3 State-owned Banks Including SBI, Indian Bank
The Reserve Bank, on Monday, said that it has imposed a penalty on three state-owned banks, including SBI and Indian Bank, for violating various regulatory norms.
A penalty of Rs 1.3 crore has been imposed on the State Bank of India for not adhering to specific directives issued by the RBI regarding 'loans and advances statutory and other restrictions' and 'guidelines on the management of intra-group transactions and exposures', as stated in a release.
In a separate announcement, the RBI mentioned that a penalty of Rs 1.62 crore has been levied on the Indian Bank for violating certain directives concerning 'loans and advances statutory and other restrictions', KYC, and 'Reserve Bank of India (interest rate on deposits) directions, 2016'.
Punjab & Sind Bank has incurred a monetary penalty of Rs one crore for failing to comply with specific provisions of the depositor education and awareness fund scheme.
Furthermore, Fedbank Financial Services has been penalised Rs 8.80 lakh for not adhering to certain provisions of the directives related to monitoring fraud in NBFCs.
The RBI clarified that these penalties are imposed on the banks and the NBFC based on shortcomings in regulatory compliance and do not serve as judgments on the validity of any transaction or agreement entered into by them with their customers.
